Now you may wonder how this video (on the left) relates to Russia's economy. Well, this animation made in Russia can be an allegorical demonstration of their economy. Russian government tried the "shock therapy" to improve their economic level, but due to their extreme ambitions they had failed.
This video below is the outlook of Russian economy:
-Currency of Russia is ruble (рубль).
-What is hard currency?
“A currency, usually from a high industrialized country, that is widely accepted around the world as a form of payment for goods and services.” (investopedia)
-What is soft currency?
“Another name for “weak currency”. The values of soft currencies fluctuate often, and other countries do not want to hold these currencies” (investopedia)
-Ruble, is it a hard currency or soft currency?
➜Ruble is a hard currency, because it’s used in several other countries other than Russia--Belarus, Abkhazia, South Ossetia and Transnistria.
Economic Crisis during 1998-1999
-Russian economy went down and been going down ever since the government made bad decisions.
1. in 1998, the market worsen the crisis click
2. in 1999, the international Monetary Fund declined to provide aid for Russia click
Russian economy dropped a lot since 2008 and started to go up from 2009. To compare the two graphs above, in 2008, about 43% of companies decided to cut personnel, but in 2009, only 18% of companies decided to cut their personnel. At the same time, even during the economic crisis, it is surprising to see companies those decided not to cut personnel has higher percentage.
Russia is the 16th largest economy of the world.
-In 1991, the Soviet Union collapsed, and their main goal was to work on the market economy to bring their economy up. So the government used "shock therapy" (which will be explained more below in "Russia's future" category), and failed.
*Nomenklatura (aka known criminal bosses): The system of patronage to senior positions in the bureaucracy of the Soviet Union and some other Communist states, controlled by committees at various levels of the Communist Party.
-concentration wealth
-ethnic background of the richest russians-jews
-mafia-may be ethnically jewish
-nomenclature jewish russia, capitalism : BerezovskyVladmir Russian Jewish
- Jewish mass imigration to Russia, so forth Russia gains more knowledge of capitalism and improves a bit in economic wise standards.
- Although Jews make up no more than three or four percent of Russia's population, they wield enormous economic and political power in that vast and troubled country." At least half of the powerful 'oligarchs' who control a signficant percentage of the economy are Jewish.
- Almost certainly the most important of the"oligarchs" is Boris A Berezovsky, a former mathematics professor who heads the Logovaz financial industrial group, which includes automobile imports and sales, aviation, oil and media. In Forbes magazine ranked him as one of the 100 richest people in the world, with an estimated net worth of 3 billion dollars.
- The second most powerful business figure is probably Vladimir Gusinsky. In addition to heading the "Most" banking group, he is also called " the Russian Rupert Murdoch" because of his large media empire, which includes the daily newspaper Sevodnya, the weekly news magazine Itogi, and the NTV television network. Gusinsky is also a chairman of the Russian Jewish Congress.
Russian Mafias - Some might say that Mafias can only be bad and should be banned for the country; however, Mafias have contributed
a lot in politics and mostly economy.
- it has lowered the economy rate cause of giving fear which lessens tourism in the nation and reduces wealth.
- however the positive side of this fear is that it makes the mafia get a real tight grip on the functionality of its nation.
- Its interior ministry says that there are now more than 9,000 criminal organizations operating inside the country, employing nearly 100,000 people, about the same number as the U.S internal revenue service. Bibliography
1) 1998, and the foreign minister of Russia. "Articles on the Jewish takeover of modern Russia - Radio Islam." Maroc Liberté, Radio Islam, Ahmed RAMI, Faisal Al Kasim, AL JAZEERA TV CHANNEL, - radioislam.org , radioislam.net , abbc.net . Morocco. Maghreb, Monde arabe. Palestine. Islam. Farrakhan. Judaïsme, Sionisme. Pour: un Front Islamique de liberation du Maroc. Pour une révolution islamique pourlaliberté au Maroc. Pour un mouvement islamique uni auMaroc.Pour plus de liberté et moins d´interdits! Dansl´Islam: la liberté estla régle, l´interdit est l´exception.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.. N.p., n.d. Web. 22 Apr. 2010. <http://www.radioislam.net/thetruth/capitalists.htm>.
Russia is one of the richest countries in raw materials (significant inputs for an industrial economy)
Oil Production
- In 2007 Russian total liquids production averaged over 9.8 million bbl/d, including 9.4 million bbl/d of crude oil, a 200,000 bbl/d increase over 2006
- Russia's oil reserves are mostly located in Western Siberia, between the Ural Mountains and the Central Siberian Plateau
- Oil and gas had been Russia’s primary hard-currency earners for the Soviet Union and even for the Russian Federation
- Russia’s heavy reliance on commodity exports made the country vulnerable to the global economic crisis of 2008. Though the Russian economy was one of the hardest hit during the 2008-2009 crisis, the rising oil and commodity prices was one of the signs of recovery
- Russia has 41 oil refineries with a total crude oil processing capacity of 5.4 million bbl/d, but many of the refineries are inefficient, aging, and in need of modernization
- The Russian government has sought to maximize the benefits of the country's oil wealth through a mixture of taxation and direct intervention. Despite a slow rate of growth of production, Russian oil taxes remain high
(Second bar is Russian Federation)
Other Natural Resources
Russia is abundant in industrially valuable nonfuel mineral even when other mine productive countries like Ukraine, Kazakstan, and Uzbekistan are no longer accessible
During the Soviet Period, tin, tungsten, bauxite, and mercury were imported
Russia possesses rich reserves of iron ore, manganese, chromium, nickel, platinum, titanium, copper, tin, lead, tungsten, diamonds, phosphates, and gold
The forests of Siberia contain an estimated one-fifth of world’s timber, mainly conifers
The Russian fishing industry is the world’s fourth-largest (behind Japan, United States, and China)
90% of Russian exports to the United States are minerals or other raw materials
-After the collapse of the Soviet Union in 1991, Russia adopted a market economy that would enable this country economically grow consistently
-US and IMF recommended Russia to “proceed with radical, market-oriented reform, and shock therapy”
-shock therapy: releasing currency controls and freeing trade regulations (rapidly changing everything to improve economy)
-This shock therapy was NOT successful
-Russia was too eager to change a lot things at once
-wanted economic & political reforms
-They are still recovering from this “shock”
-ex) China is the successful case of shock therapy because they only went through economic reform
-After the Russian Revolution, Russia altered its government system to “gangster capitalism”
-also, from planned economy (communism) to market economy
Russia NOW
-NATO (North Atlantic Treaty Organization) was formed against Russia, which grew resentment and “assertiveness”
-boosted up Russia’s economic growth later
-However, in 2008, Russia experienced a severe economic crisis
-The Central Bank of Russia used $600 billion, which is one-third of their international reserves, to prevent deflation
-By the mid-2009, Russia has been showing some positive signs of recovery
-Russia now needs to work on unemployment rate, government’s corruptness, and large capital investment
Future
-Russia as one of the BRIC countries
-BRICs: Brazil, Russia, India, and China-rapidly developing countries
-Out of the four, Russia has the biggest land area and forest
-Furthermore, Russia is very rich in natural resources
-one of the largest natural gas exporters
-According to the graphs above, Russia’s economy is improving after the intense economic downfall in 2008
-Like NATO, BRICs can form their own association, but there is nothing known
-However, Russia’s economy is very easily influenced by outside factors
-With the stabilization and reinforcement of basic infrastructure, plus opening up more natural resources trade would definitely boost up Russia’s economy
Bibliography
1. "BRIC - Wikipedia, the free encyclopedia." Wikipedia, the free encyclopedia. N.p., n.d. Web. 22 Apr. 2010. <http://en.wikipedia.org/wiki/BRIC>.
The Economy of Russia
by Sujin Lee, Rachel Lim, Jennifer Nam, Brian Choimage from http://historyofeconomics.files.wordpress.com/2009/03/bad-economy.jpg
Intro
Now you may wonder how this video (on the left) relates to Russia's economy. Well, this animation made in Russia can be an allegorical demonstration of their economy. Russian government tried the "shock therapy" to improve their economic level, but due to their extreme ambitions they had failed.
This video below is the outlook of Russian economy:
<Source>
" YouTube - Russian Animation - Ванна - Bathroom (No Subs Needed) ." YouTube - Broadcast Yourself. . N.p., n.d. Web. 21 Apr. 2010. <http://www.youtube.com/watch?v=sQJjqWl4ghM>.
<Source>
" YouTube - Insight, Outlook For Ru ssian Economy ." YouTube - Broadcast Yourself. . N.p., n.d. Web. 20 Apr. 2010. <http://www.youtube.com/watch?v=WBo7Kl0LGII&feature=player_embedded>.
Economic history (Sujin)
1 Russian ruble = 0.034317 U.S. dollars
-What is hard currency?
“A currency, usually from a high industrialized country, that is widely accepted around the world as a form of payment for goods and services.” (investopedia)
-What is soft currency?
“Another name for “weak currency”. The values of soft currencies fluctuate often, and other countries do not want to hold these currencies” (investopedia)
-Ruble, is it a hard currency or soft currency?
➜Ruble is a hard currency, because it’s used in several other countries other than Russia--Belarus, Abkhazia, South Ossetia and Transnistria.
Economic Crisis during 1998-1999
-Russian economy went down and been going down ever since the government made bad decisions.
1. in 1998, the market worsen the crisis click
2. in 1999, the international Monetary Fund declined to provide aid for Russia click
"Russia's economy affects the world: Interview" video
Russian economy dropped a lot since 2008 and started to go up from 2009. To compare the two graphs above, in 2008, about 43% of companies decided to cut personnel, but in 2009, only 18% of companies decided to cut their personnel. At the same time, even during the economic crisis, it is surprising to see companies those decided not to cut personnel has higher percentage.
Russia is the 16th largest economy of the world.
-In 1991, the Soviet Union collapsed, and their main goal was to work on the market economy to bring their economy up. So the government used "shock therapy" (which will be explained more below in "Russia's future" category), and failed.
*Nomenklatura (aka known criminal bosses): The system of patronage to senior positions in the bureaucracy of the Soviet Union and some other Communist states, controlled by committees at various levels of the Communist Party.
Bibliography
CRISES, C. "russian currency - Google Search."Google. N.p., n.d. Web. 20 Apr. 2010. <__http://www.google.com/search?hl=en&rlz=1G1GGLQ_ENKR377&q=russian%20currency&um=1&ie=UTF-8&sa=N&tab=iw__>.
Clarke, Renfrey. "The economic history of the Russian Federation."Hartford Web Publishing. N.p., n.d. Web. 21 Apr. 2010. <http://www.hartford-hwp.com/archives/63/index-dc.html>.
Talmazan, Yuliya. "Rubles (Russian) | NowPublic Photo Archives."NowPublic.com | The News is NowPublic. N.p., n.d. Web. 20 Apr. 2010. <__http://www.nowpublic.com/tech-biz/rubles-russian__>.
"Welcome to Investopedia.com."Welcome to Investopedia.com. N.p., n.d. Web. 21 Apr. 2010. <__http://www.investopedia.com/rotate.aspx?invsection=home&backurl=http%3a%2f%2fwww.investopedia.com%2f__>.
"What next for the job market in Russia? - Telegraph."Telegraph.co.uk: news, business, sport, the Daily Telegraph newspaper, Sunday Telegraph - Telegraph. N.p., n.d. Web. 22 Apr. 2010. <http://www.telegraph.co.uk/sponsored/russianow/5201550/What-next-for-the-job-market-in-Russia.html>.
People (brian)
-concentration wealth
-ethnic background of the richest russians-jews
-mafia-may be ethnically jewish
-nomenclature
jewish russia, capitalism
Russian Jewish
- Jewish mass imigration to Russia, so forth Russia gains more knowledge of capitalism and improves a bit in economic wise standards.
- Although Jews make up no more than three or four percent of Russia's population, they wield enormous economic and political power in that vast and troubled country." At least half of the powerful 'oligarchs' who control a signficant percentage of the economy are Jewish.
- Almost certainly the most important of the"oligarchs" is Boris A Berezovsky, a former mathematics professor who heads the Logovaz financial industrial group, which includes automobile imports and sales, aviation, oil and media. In Forbes magazine ranked him as one of the 100 richest people in the world, with an estimated net worth of 3 billion dollars.
- The second most powerful business figure is probably Vladimir Gusinsky. In addition to heading the "Most" banking group, he is also called " the Russian Rupert Murdoch" because of his large media empire, which includes the daily newspaper Sevodnya, the weekly news magazine Itogi, and the NTV television network. Gusinsky is also a chairman of the Russian Jewish Congress.
Russian Mafias
- Some might say that Mafias can only be bad and should be banned for the country; however, Mafias have contributed
a lot in politics and mostly economy.
- it has lowered the economy rate cause of giving fear which lessens tourism in the nation and reduces wealth.
- however the positive side of this fear is that it makes the mafia get a real tight grip on the functionality of its nation.
- Its interior ministry says that there are now more than 9,000 criminal organizations operating inside the country, employing nearly 100,000 people, about the same number as the U.S internal revenue service.
Bibliography
1) 1998, and the foreign minister of Russia. "Articles on the Jewish takeover of modern Russia - Radio Islam." Maroc Liberté, Radio Islam, Ahmed RAMI, Faisal Al Kasim, AL JAZEERA TV CHANNEL, - radioislam.org , radioislam.net , abbc.net . Morocco. Maghreb, Monde arabe. Palestine. Islam. Farrakhan. Judaïsme, Sionisme. Pour: un Front Islamique de liberation du Maroc. Pour une révolution islamique pourlaliberté au Maroc. Pour un mouvement islamique uni auMaroc.Pour plus de liberté et moins d´interdits! Dansl´Islam: la liberté estla régle, l´interdit est l´exception.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.Islam.. N.p., n.d. Web. 22 Apr. 2010. <http://www.radioislam.net/thetruth/capitalists.htm>.
2) "Fenton ." report. N.p., n.d. Web. 20 Apr. 2010. <www.fentonreport.com/2010/03/24/travel/russia-jewish-autonomous-region-travel-jim-rogers-world-adventure/1703>.
Natural Resources (Jennifer)
Russia is one of the richest countries in raw materials (significant inputs for an industrial economy)Oil Production
- In 2007 Russian total liquids production averaged over 9.8 million bbl/d, including 9.4 million bbl/d of crude oil, a 200,000 bbl/d increase over 2006
- Russia's oil reserves are mostly located in Western Siberia, between the Ural Mountains and the Central Siberian Plateau
- Oil and gas had been Russia’s primary hard-currency earners for the Soviet Union and even for the Russian Federation
- Russia’s heavy reliance on commodity exports made the country vulnerable to the global economic crisis of 2008. Though the Russian economy was one of the hardest hit during the 2008-2009 crisis, the rising oil and commodity prices was one of the signs of recovery
- Russia has 41 oil refineries with a total crude oil processing capacity of 5.4 million bbl/d, but many of the refineries are inefficient, aging, and in need of modernization
- The Russian government has sought to maximize the benefits of the country's oil wealth through a mixture of taxation and direct intervention. Despite a slow rate of growth of production, Russian oil taxes remain high
Other Natural Resources
Russia is abundant in industrially valuable nonfuel mineral even when other mine productive countries like Ukraine, Kazakstan, and Uzbekistan are no longer accessible
During the Soviet Period, tin, tungsten, bauxite, and mercury were imported
Russia possesses rich reserves of iron ore, manganese, chromium, nickel, platinum, titanium, copper, tin, l
The forests of Siberia contain an estimated one-fifth of world’s timber, mainly conifers
The Russian fishing industry is the world’s fourth-largest (behind Japan, United States, and China)
90% of Russian exports to the United States are minerals or other raw materials
Bibliography
"Russia - Natural Resources." Country Studies. Web. 21 Apr. 2010. <http://countrystudies.us/russia/59.htm>.
"Russia Economy, Russian Economy, Russia's Economic Profile | EconomyWatch.com." Economy Watch | World, US, China, India Economy | Economics, Investment, Stocks, Bonds, Forex, Industries | Personal Finance, Credit Card, Insurance, Mortgage, Loans, Jobs. Web. 22 Apr. 2010. <http://www.economywatch.com/world_economy/russia/>.
"Russia's Oil Tax - Forbes.com." Forbes.com - Business News, Financial News, Stock Market Analysis, Technology & Global Headline News. Web. 22 Apr. 2010. <http://www.forbes.com/2007/06/14/russia-oil-taxes-biz-cx_0615oxford.html>.
Pictures
http://hslu.files.wordpress.com/2009/08/world-oil-production-end-of-2008-bp-data2.jpg
http://blog.american.com/wp-content/uploads/2009/07/exportsfigure.jpg
http://media.stratfor.com/mmf/3/7/37e1525dff7d7c399ba4ae8e7e32c9f31f39c614.jpg
http://www.theodora.com/maps/new9/russia_oil_pipelines_map.gif
http://www.borealforest.org/world/images/russia_forest_map.jpg
Russia’s future (rachel)
Economic Reform
-After the collapse of the Soviet Union in 1991, Russia adopted a market economy that would enable this country economically grow consistently
-US and IMF recommended Russia to “proceed with radical, market-oriented reform, and shock therapy”
-shock therapy: releasing currency controls and freeing trade regulations (rapidly changing everything to improve economy)
-This shock therapy was NOT successful
-Russia was too eager to change a lot things at once
-wanted economic & political reforms
-They are still recovering from this “shock”
-ex) China is the successful case of shock therapy because they only went through economic reform
-After the Russian Revolution, Russia altered its government system to “gangster capitalism”
-also, from planned economy (communism) to market economy
Russia NOW
-NATO (North Atlantic Treaty Organization) was formed against Russia, which grew resentment and “assertiveness”
-boosted up Russia’s economic growth later
-However, in 2008, Russia experienced a severe economic crisis
-The Central Bank of Russia used $600 billion, which is one-third of their international reserves, to prevent deflation
-By the mid-2009, Russia has been showing some positive signs of recovery
-Russia now needs to work on unemployment rate, government’s corruptness, and large capital investment
Future
-Russia as one of the BRIC countries
-BRICs: Brazil, Russia, India, and China-rapidly developing countries
-Out of the four, Russia has the biggest land area and forest
-Furthermore, Russia is very rich in natural resources
-one of the largest natural gas exporters
-According to the graphs above, Russia’s economy is improving after the intense economic downfall in 2008
-Like NATO, BRICs can form their own association, but there is nothing known
-However, Russia’s economy is very easily influenced by outside factors
-With the stabilization and reinforcement of basic infrastructure, plus opening up more natural resources trade would definitely boost up Russia’s economy
Bibliography
1. "BRIC - Wikipedia, the free encyclopedia." Wikipedia, the free encyclopedia. N.p., n.d. Web. 22 Apr. 2010. <http://en.wikipedia.org/wiki/BRIC>.
2. "Russia Future trends, Information about Future trends in Russia." Encyclopedia of the Nations - Information about countries of the world, United Nations, and World Leaders. N.p., n.d. Web. 22 Apr. 2010. <http://www.nationsencyclopedia.com/economies/Europe/Russia-FUTURE-TRENDS.html>.
3. "The Russian Economic Crisis - Council on Foreign Relations." Council on Foreign Relations. N.p., n.d. Web. 22 Apr. 2010. <http://www.cfr.org/publication/21803/russian_economic_crisis.html?gclid=CPX37pnvlqECFQa6bwodT07rMg>.
4. "The World Factbook." Central Inteligence Agency. N.p., n.d. Web. 22 Apr. 2010. <https://www.cia.gov/library/publications/the-world-factbook/geos/rs.html>.
5. occupation. "Economy of Russia - Wikipedia, the free encyclopedia." Wikipedia, the free encyclopedia. N.p., n.d. Web. 22 Apr. 2010. <http://en.wikipedia.org/wiki/Economy_of_Russia>.